Minimal increase in production costs/ Index does not signal strong inflationary pressures
Production costs in the economy have marked a very slight increase in the first quarter of 2026. According to INSTAT data, the Producer Price Index reached 129.7 points, increasing by only 0.02% compared to the same period a year earlier.
The highest annual increase was recorded in the manufacturing industry, by 0.4%, while the water supply and waste management sector recorded an increase of 0.3%. In contrast, the electricity, gas and steam sector experienced a price decrease of 0.9%.
In the domestic market, production costs increased by 0.3% compared to the first quarter of 2025, while exports recorded a decrease of 0.5%, indicating that Albanian producers have encountered less price pressure on goods destined for foreign markets.
Even compared to the last quarter of 2025, the changes remain limited. The overall index increased by 0.1%, while within the manufacturing industry the largest increases were observed in the production of wood and its by-products, the production of beverages, printing and the production of rubber and plastic products, with 1.2% each activity.
On the other hand, the most significant decreases were recorded in the production of electrical equipment by 0.9% and in metallurgy by 0.6%, while the energy sector continued to show a downward trend.
Overall, the data show that production costs remain almost unchanged at the beginning of the year, not signaling strong upward pressures on final consumer prices at the moment. However, developments in the manufacturing industry remain the main factor that could affect price developments in the coming months.
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